Clinic in South Bend linked to $10 million Allstate lawsuit

By Laureen Fagan, SBT24/7News

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By Beth Boehne

At least one business with links to South Bend is listed in a multimillion-dollar federal lawsuit filed by Allstate Insurance Company, alleging a fraudulent claims scheme involving chiropractors and attorneys in four states who preyed on car accident victims.

The lawsuit was filed Thursday in the U.S. District Court for the Northern District of Texas in Dallas, Allstate said in a statement. The filing follows a lengthy investigation by the company into the practices of 66 parties to the suit, who allegedly participated in a scheme to lure people injured in auto accidents into medical services.

In addition to chiropractic offices, the suit names a telemarketing firm in Louisiana that promoted the services, law offices, and related services in Texas, Ohio, Alabama and Indiana.

Three clinics involved in the suit have operated in Indiana, or continue to do so. They are located in Indianapolis, Hammond and South Bend, the company said.

Allstate did not name the South Bend office included in the suit, which includes claims of violations under the Federal Racketeer Influenced and Corrupt Organizations Act, commonly known as RICO.

The 67-page filing alleges that telemarketers misidentified themselves as representatives of Allstate or other insurance companies and promoted services at 29 different clinics in the four states.

The potential patients, Allstate claims, were then told they had significant injuries and either coerced or deceived into "a standardized and unnecessary treatment plan" the insurance company paid for.

Patients were then referred to personal injury law offices associated with the alleged scheme. Allstate says in some cases, staff from law offices came to the chiropractic clinics to acquire them as new clients.

The insurance company wants the fraudulent charges reimbursed. Under RICO law, the company can file for three times its damages amount, which along with legal costs comes to more than $10 million.

Allstate asks that anyone who knows anything about the scheme, or thinks they may have been victimized, to call the National Insurance Crime Bureau at (800) 835-6422.

Thursday, Jun 26 at 7:30 PM robert wegnerowski wrote ...

So what is the name of the company so other people won't go to them?

Tuesday, Mar 18 at 2:28 PM Concerned wrote ...

This is a frivilous lawsuit filed by Allstate to slander this company's name. Allstate sneezes at 10 Million and factually pays 75,000.00 per day for court order violation to turn over McKinsey Consutling Firm tactics to save their company money! These patients truly needed care and it's a shame those who need it most are being denied care by Allstate!

Wednesday, Mar 12 at 3:33 PM RTWKU wrote ...

Unfortunately it is the wide spread fraud that causes everyone's insurance to increase. This type of behavior only hurts the honest individuals who are injured. This is no different than shop lifting. The retail industry spends billions combating it, and all consumers pay the price.

Tuesday, Mar 11 at 1:00 PM Lucy wrote ...

My experiences with a chiropractor has been the X-rays speak for themselves, and insurance company ok's or deny's claim, the actual chiropractic works comes after approval, my insurance company pays a whopping $27.00 a office visit.... this story doesn't make sense to me

Tuesday, Mar 11 at 12:50 PM boohoo Alstate wrote ...

Oh Boo Hoo to Allstate the insurance company who would rather pay court costs than pay a simple claim, what goes around comes around-heh

Tuesday, Mar 11 at 12:53 AM CMA wrote ...

Chiropractors...Quack, quack! Pretend doctors! I wonder which one is involved this time?!?

Monday, Mar 10 at 11:44 AM joan wrote ...

chiropractors in general are known for padding their bills to the insurance company..

Monday, Mar 10 at 11:15 AM Just me wrote ...

What's new

Monday, Mar 10 at 11:09 AM INDEED, THEY ARE wrote ...

Insurance and the scams involved are the DEVIL!!!

Sunday, Mar 9 at 10:36 PM Ted wrote ...

The insurance industry is at the very top of the food chain. Legislators do what insurance companies tell them to do. Politicians work toward what's best for insurance/banking industry. They're set up to detect any attempt to rip them off. They have the power and the backing to make you wish your mama had never met your papa. Why anyone would try to fool the insurance company is beyond me. In fact, it's kinda unbelievable... like we don't know the whole story.

Sunday, Mar 9 at 9:38 PM missygurl wrote ...

Why wont they tell what Co it is so we do not go to them for care since they are corrupt who wants their care

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